It's basically a big tank on your roof with solar panels that heats up the water. It doesn't replace the water heater, it's in addition to the water heater. I don't know exactly how it works, but I assume that as you use hot water out of your electric water heater, the water from the solar tank replaces the water you used. And therefore the electric water heater doesn't have to run as much because the inlet water coming from the roof is already hot or warm .
thanks, that makes sense. I knew a guy that had a solar pool heater on his roof, which basically was a huge flat glass thing that the pool pump fed water to the top, the water dripped down the slope of the roof under glass and got heated up by the sun. then collected at the bottom and pumped into the pool at a hotter temperature. But no one cares if your pool isn't heated when the sun goes down...
Wasn't sure if it was something like that.